Whilst it is obvious that increasing the money supply will cause inflation in an otherwise fixed economy, it is important to note that increasing the money supp

Whilst it is obvious that increasing the money supply will cause inflation in an otherwise fixed economy, it is important to note that increasing the money supply will not cause inflation if productivity also increases. If you believe that there is untapped productivity in the economy then, by increasing money supply and spending the additional money in those areas, it is possible to increase productivity whilst avoiding inflation.